#GBPUSD @ 1.20260 The Pound U-turns at 1.2065 slides to. 1.2020 area. (Pivot Orderbook analysis)

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• The Pound U-turns at 1.2065 slides to. 1.2020 area.
• Concerns about China and Ukraine have soured investors’ sentiment.
• The US dollar trims losses as US Treasuries bounce up.

The pair currently trades last at 1.20260.

The previous day high was 1.2126 while the previous day low was 1.2002. The daily 38.2% Fib levels comes at 1.205, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2079, expected to provide resistance.

Sterling’s reversal from the intra-day high of 1.2065 seen in the early European session has extended to the 1.2020 area in a choppy market session, with the European markets picking up, following a negative opening.

Investors’ optimism about the end of the Zero-COVID policy in China faded on Thursday as reports about the exponential growth of infections and their strain on the country’s financial system are casting doubts on a fast recovery of the Chinese Economy.

Beyond that, the rising tensions in Ukraine where the Russian army is shelling heavily Kyiv and other cities after the Kremlin’s refusal to accept Zelenski’s peace plan is weighing risk appetite further, increasing negative pressure on the GBP.

Furthermore, the 0.5% interest rate hike approved by the Bank of England in December, following November’s 0.75% hike, has raised speculation of an easier monetary tightening in 2023 and a lower Bank Rate peak which is acting as a headwind for the Sterling.

On the other end, the US Dollar is trimming losses after a negative market opening. The US Dollar Index, which measures the value of the Greenback against the most traded currencies, has bounced up from levels right above 104.00, returning to 104.30 tracing the moderate recovery on US Treasury yields.

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.203 at the time of writing. Pair opened at 1.2017 and is trading with a change of 0.11 % .

The pair is trading below its 20 Daily moving average @ 1.2176, above its 50 Daily moving average @ 1.1874 , above its 100 Daily moving average @ 1.1669 and below its 200 Daily moving average @ 1.2057

The previous day high was 1.2126 while the previous day low was 1.2002. The daily 38.2% Fib levels comes at 1.205, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2079, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.1971, 1.1925, 1.1847
• Pivot resistance is noted at 1.2094, 1.2172, 1.2218

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